- Taiwan plans to propose a VASP draft law in June 2025, allowing banks to issue stablecoins for the first time.
- Stablecoins will act as a bridge between legal tender and virtual currencies, offering investors secure entry into crypto markets.
In June 2025, Taiwan will introduce a bill on virtual asset service providers (VASPs). It will allow banks to issue stablecoins pegged to the New Taiwan Dollar (NTD).
The stablecoin is expected to act as a bridge between official currencies and digital assets, providing investors with safer and easier access to the crypto market.
JUST IN: TAIWAN PLANS TO ANNOUNCE DRAFT LAW IN JUNE 2025 TO AUTHORIZE BANKS TO ISSUE STABLECOINS
— BSCN Headlines (@BSCNheadlines) January 23, 2025
Taiwan: Strategic Steps Toward Crypto Regulation and Stablecoin Integration
In the last few years, Taiwan has moved actively to create a clear structure for the crypto sector. The Financial Supervisory Commission (FSC) published rules for VASPs covering numerous important sectors in September 2023.
The rules stress the need of preventing money laundering, required issuing of virtual assets, transaction openness, internal administration, and the division of consumer assets from company operations.
Later, in October 2023, the nation adopted draft rules on virtual asset management meant to enhance consumer protection, establish operational guidelines for asset operators, and more precisely define virtual assets. This seeks to provide investment security and rights protection as well as financial stability.
Given that stablecoins might be a useful link between official currencies and digital assets, the idea to create them by banks is likewise seen as a significant invention. Taiwan aims to make sure that the acceptance of stablecoins supports the growth of the digital economy of the nation and runs in line with tight regulatory criteria, so securing users.
Besides that, the CNF previously reported that the nation has let banks test digital asset custody systems in October 2024. The pilot concentrated on servicing institutional clients, and full adoption is expected to start in early 2025.
